The implementation of qualitative comparative analysis (QCA) to define the working capital management strategy of hotels in Indonesia Online publication date: Mon, 12-Aug-2019
by Rini Anggraini Lestari; Taufik Faturohman
International Journal of Trade and Global Markets (IJTGM), Vol. 12, No. 3/4, 2019
Abstract: Indonesian tourism and hotel business has shown positive growth and prepared as the economic leading sector. This research aims to define the working capital management strategy of Hotels in Indonesia to optimise corporate performance in spite of the uncertainty of the external environment and seasonal demand. The data consist of quarterly financial data of 11 companies under subsector hotel, restaurant, and tourism listed in Indonesia Stock Exchange during 2012-2016. The study proposes five possible strategies for working capital management based on the profitability performance which all aim to optimise the corporate performance. The strategies are constructed theoretically using fuzzy set qualitative comparative analysis (fsQCA) method and feasibly to be tested in Indonesia and international chain hotels.
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